New Law Fast-Tracks Land Acquisition for Critical Infrastructure Projects

Minister Bishop emphasised that infrastructure is a cornerstone of New Zealand’s economic and social wellbeing.

New Zealand’s infrastructure build is set to accelerate following Parliament’s passing of the Public Works Act Amendment Bill, a reform aimed at reducing delays and cutting costs for major national projects. Infrastructure Minister Chris Bishop and Land Information Minister Chris Penk announced that the new measures will streamline land acquisition processes and provide greater certainty for both project developers and landowners.

Driving Growth Through Faster Infrastructure Delivery

Minister Bishop emphasised that infrastructure is a cornerstone of New Zealand’s economic and social wellbeing.

“Infrastructure projects drive economic growth, create jobs, and lift productivity. That means businesses can pay higher wages and the Government can invest more in health, education and other public services,” he said.

He added that New Zealand faces an urgent need to address its long-standing infrastructure deficit, pointing to congested transport networks and bottlenecks in delivering essential public services.

The amended legislation allows government agencies to acquire land more quickly for priority projects, particularly those already listed in Schedule 2 of the Fast-track Approvals Act and the Roads of National Significance under the Government Policy Statement on Land Transport 2024.

Key Features of the Accelerated Land Acquisition Process

The Bill introduces several significant changes intended to create a faster, fairer, and more efficient process:

• Incentive Payments: Landowners who voluntarily agree to sell before a formal Notice of Intention is issued will receive a 15 percent premium on their land’s value, capped at $150,000.

• Recognition Payments: All landowners whose land is acquired under the accelerated scheme will receive a five percent recognition payment (up to $92,000) acknowledging the importance of their contribution to the public good.

• Streamlined Objections: Disputes will no longer be handled through the Environment Court, a process often criticised as lengthy and costly. Instead, decisions will be made directly by the Minister for Land Information or the relevant local authority.

• Opt-Out Clause: Government agencies may still use the traditional Public Works Act acquisition process if they choose.

Minister Penk highlighted the importance of the reforms in reducing unnecessary hurdles.

“For too long, critical infrastructure has been delayed and made more expensive by drawn-out objections to compulsory land acquisition. Faster delivery of infrastructure like better transport networks will lower costs for businesses and households, and support exporters to reach overseas markets,” he said.

Wider Reform Package on the Horizon

The Government has signalled that this is only the first stage of a broader reform agenda. Later this year, comprehensive amendments to the Public Works Act will be introduced, with an opportunity for the public to provide input through the parliamentary select committee process.

These future reforms are expected to:

• Modernise land acquisition laws for the 21st century.

• Improve engagement and consultation with affected landowners.

• Introduce new legal tools to aid in disaster recovery and resilience planning.

• Strengthen property rights while ensuring government and councils can deliver essential infrastructure on time.

Why This Matters

New Zealand has long grappled with an infrastructure shortfall, particularly in transport, housing, and climate resilience projects. The new accelerated land acquisition pathway is expected to remove costly delays, enabling faster delivery of roads, bridges, rail links, and public service facilities.

Supporters argue the legislation strikes a balance between landowner rights and national interest, compensating property owners fairly while ensuring the country can build infrastructure at the pace needed to support population growth and economic competitiveness.

With further reforms planned, the Government says its infrastructure agenda is about more than just construction—it’s about ensuring New Zealanders enjoy modern, efficient, and resilient public services for decades to come.